Tax Credits Overpayment/Dispute

CathG78

Hi,
Please could someone offer opinions please as to whether I have a leg to stand on!

In late January 2014, I informed Tax Credits that my partner had moved into my address. Tax credits informed me that I would need to re-apply for tax credits rather than what I expected, of being able to simply add his name and earnings on. It was left a little late as we were away on holiday and he started his new job on 5th February 2014. In the meantime, my claim was stopped.

I reapplied using the paperwork provided via post. He had just started work at the beginning of February after a period of full time education and self employment following on from bankruptcy. My claim was ended at the end of January (last payment 30th Jan) and the new one began at the end of March. My award notice was changed, the paperwork was correct and I didn't think any more about it.

Renewal came and went. I renewed my claim on the telephone, as I have done every year since I began claiming tax credits. All details were run through, both our earnings and childcare etc. My payments changed slightly on 10th July 2014 as a result. Again, paperwork dated 7th July did not contain any details that I considered to be incorrect.

I was then informed that I had been overpaid by £1,222.59. I had no idea why, and when I contacted them, we ran through all the earnings and tax credits said it was because there was a gap of four weeks between my partner moving in and tax credits receiving the paperwork. I questioned it further because the amount I had been receiving was actually only a difference of a four pounds, so how had all that money amounted in four weeks, but after a lengthy phone call and not really getting any answers, I left it that it was to be paid back. I am currently paying back that overpayment weekly.

I contacted tax credits again (Feb 2015) to change my husband's employment and earnings (which were £2,000 less than on the joint application and renewal), and I received a new award notice which refers to an overpayment of ANOTHER £4,747.98. Added together, the two overpayments amount to £5,970.57! I am told that it is as a result of my not informing tax credits of my husband's earnings, but that's not correct. I did inform them of his earnings, in January 2014 when he started his new job, again at renewal in July 2014 and again when I rang to question the first overpayment (over an hour on the phone going through all the details). I was then told that I should have picked it up at renewal. My renewal was done over the telephone, as I have done every year since I started claiming tax credits. I received an award notice which referred to my partner's earnings as being £3,256.00 as an employee (the payment from his job from February to April 2014) and his earnings as self employed £1,800.00 which was the earnings from 2013.

I do not believe that this overpayment is as a result of my not providing the correct information or not questioning the payments. I have provided two sets of information, via new claim and renewal and have questioned the payments multiple times – and was told it was correct each time. I disputed the overpayment and received a letter back to say that the overpayment needed to be paid back (but they only refer to the first overpayment of £1,2K. They wrote in their letter that while they accept that I had fulfilled my responsibilities (they actually say that), they state that there is nothing they can do. They did not even mention the second overpayment.

I did state in my dispute that due to bankruptcy, full time education and my being off work sick for 12 months, the repayment would affect us terribly. Their response was to send me a form to get my GP to fill in to confirm my mental illness is the reason that I did not fulfil my responsibilities. I wrote back and told them that they were implying I had not fulfilled my responsibilities, when I clearly had. I also stated that they had no right to request health information from me, that they should have asked my GP direcly and paid for that infromation - but I did include notes from my health file showing my sickness and the reasons for it.

In summary

1. I contacted tax credits when my partner moved into my address in February 2014.
2. A new claim was started via an application that I filled out. He had just started work at the beginning of February (2014) after a period of full time education (Sept 2013 – June 2015) and self employment (ended September 2014) following on from bankruptcy. My last payment on my single claim was 30th Jan 2014 and the new claim began at the end of March 2014.
3. Via that application, tax credits were informed of my partner's salary.
4. I renewed my joint claim in June/July 2014. Tax credits were again informed of my partner's salary. My payments changed slightly (by around £4 a week) on 10th July 2014 as a result.
5. I was informed by tax credits that I had been overpaid on my single claim. I contacted tax credits again. Tax credits were again informed of my partner's salary.
6. I contacted tax credits again in February 2015 to change my husband's employment and earnings (which were £2,000 less than previously disclosed). I received another award notice which gives me an overpayment of £4,747.98.

Then, more recently, on Wednesday, 9th September 2015, my payment changed and dropped down to half per week. I contacted tax credits to find that my childcare details had been removed without my knowledge or consent and also my employment details had been removed without my knowledge or consent. When I spoke to them to query - the guy confirmed at first that my working details of 16.5 hours a week were on the system. I asked him three or four times to check the system as I knew they must have been removed. ONE HOUR later, he admitted that actually, they had actually been removed and he could not explain why. The system was showing that they were on there, but the paperwork was not. He changed it all, and confirmed it was all back on the system. I then got another lot of paperwork the week later and my childcare costs had been upped by £100 a week! I had to phone them again to get it removed and put back to the correct amount, but again they said that the paperwork was wrong and the system was showing the correct amount! I have no idea what I'm supposed to do!!

Sorry it's a long one, and very confusing.

NYM

Gosh that is a long post! :shocked:

It does seem very complicated, but I'm sure one of our 'resident' experts will be able to advise you accordingly.

I'd just like to ask a question if I may?

Is your partner also now your husband? and is he the husband that you reclaimed PPI with?

For reference;

January 2015

CathG78 wrote: »

Hi All,

I recently claimed our PPI back from a mortgage dating back to 2005. We were owed £800 and it was in a joint mortgage. My husband was declared bankrupt in 2012 but the order ended one year later (June 2013). When the PPI was paid out in October last year, the bank (Halifax) kept my husband's half. Is that correct, seeing as the order ended in June 2013 or is he still able to have his money taken by the bank? thanks in advance.

bebewoo

What has the PPI go to do with anything?
I do admit it's confusing though, do you have a husband AND a partner?
Also the tax credits office have always been hopeless and will get it wrong more times than they get it right.

You can request an appeal which may go in your favour if you can give dates to show that you contacted them with the correct information multiple times and it's their error (they don't like to admit to errors though)

Icequeen99

I have two questions:

1. Is the first overpayment from your single claim and the second from the joint claim?
2. What was your partner's annual income (for tax credit purposes) for 12/13, 13/14 and 14/15 tax years? And yours?

Without that information it is impossible to say whether what has happened is correct or not.

IQ